Hot Copper Charting and Chat, page-287

I had a thought it was you @gj0201 but I didn't want to tag you in case I was wrong - yes, the RSI is one of the now few indicators that I have kept on a screen and I check it always particularly for divergences - it doesn't really mean much when it just floats around the 50 area but it really comes into it's own at above 70 and below 30 (overbought and oversold) - then the most powerful are those divergences if they occur at those levels.

One of the reasons I think it is still fairly accurate is that if you have a look at the formula for the RSI it measures in a way the spread of a security, albeit with a bit of smoothing, and that's exactly what we look for in part in VSA - is it the closest an indicator can come to matching some VSA principles ? I think so although the volume component is missing. Others I have looked at that do include volume such as the MFI don't really give the same results as the RSI.